Monopolistically competitive firms can earn profits in the long run by:
A. price discriminating.
B. continually innovating to differentiate their product.
C. further minimizing their costs.
D. monopolistically competitive firms only earn zero profits in the long run.
B. continually innovating to differentiate their product.
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Which of the following are not included as a component of national income?
a. Corporate profits b. Compensation of employees c. Net interest income d. Capital gains and capital losses
Which of the following would both make a worker's wage higher than otherwise?
a. the work is safe, the employer pays an efficiency wage b. the work is safe, the employer does not pay an efficiency wage c. the work is dangerous, the employer pays an efficiency wage d. the work is dangerous, the employer does not pay and efficiency wage
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. Assume the market price is $3 and the firm is currently producing 100 units. If the firm produces zero units in the short run, it will reduce its economic loss by:
A. $300. B. $600. C. $900. D. $1,200.
If depreciation exceeds gross investment:
A. the economy's stock of capital may be either growing or shrinking. B. the economy's stock of capital is shrinking. C. the economy's stock of capital is growing. D. net investment is zero.